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| Version 4 | Version 5 |
|---|---|
| 'Progress' in US auto bail-out | 'Progress' in US auto bail-out |
| (about 18 hours later) | |
| Progress has been made on a multi-million dollar bail-out deal for the three big US carmakers, officials say. | Progress has been made on a multi-million dollar bail-out deal for the three big US carmakers, officials say. |
| Congress and the White House are holding weekend talks on the plan after two days of Congressional hearings. | Congress and the White House are holding weekend talks on the plan after two days of Congressional hearings. |
| White House Press Secretary Dana Perino said talks with members of both parties had been "constructive". | White House Press Secretary Dana Perino said talks with members of both parties had been "constructive". |
| House Speaker Nancy Pelosi wants a vote on the plan next week, and is said to have accepted White House conditions on the source of the bail-out funding. | House Speaker Nancy Pelosi wants a vote on the plan next week, and is said to have accepted White House conditions on the source of the bail-out funding. |
| Bosses from the three big car companies - General Motors, Ford and Chrysler - have appeared before two Congressional committees pleading for $34bn (£23bn) to prevent collapse. | Bosses from the three big car companies - General Motors, Ford and Chrysler - have appeared before two Congressional committees pleading for $34bn (£23bn) to prevent collapse. |
| They warn the collapse of any one of them would have disastrous effects on the whole US economy. | They warn the collapse of any one of them would have disastrous effects on the whole US economy. |
| The talks follow an announcement on Friday that more than half a million jobs were lost across the US in November, pushing the unemployment rate to a 15-year high in a dramatic indication of the country's worsening economic situation. | The talks follow an announcement on Friday that more than half a million jobs were lost across the US in November, pushing the unemployment rate to a 15-year high in a dramatic indication of the country's worsening economic situation. |
| Hope of progress | Hope of progress |
| There has been considerable opposition to a carmaker bail-out plan. Critics say the manufacturers need to first show they can be more efficient. DETROIT'S BIG THREE US November car sales compared with a year earlier: GM: down 41% to 154,877Ford: down 30% to 118,818 (excluding Volvo)Chrysler: down 47% to 85,260 Why are the 'big three' in trouble? | There has been considerable opposition to a carmaker bail-out plan. Critics say the manufacturers need to first show they can be more efficient. DETROIT'S BIG THREE US November car sales compared with a year earlier: GM: down 41% to 154,877Ford: down 30% to 118,818 (excluding Volvo)Chrysler: down 47% to 85,260 Why are the 'big three' in trouble? |
| A key stumbling block in the rescue talks had been over a White House stipulation that the aid be drawn from a $25bn fund set aside to encourage the production of environmentally friendlier cars, which President George W Bush wants Congress to modify. | |
| Ms Perino said on Saturday the use of this fund for the bail-out was central to any agreement, along with requirements that taxpayers are protected and that carmakers take tough business decisions. | Ms Perino said on Saturday the use of this fund for the bail-out was central to any agreement, along with requirements that taxpayers are protected and that carmakers take tough business decisions. |
| "Taxpayers should not be asked to finance assistance for automakers without a strong likelihood that they will be paid back," she said. | "Taxpayers should not be asked to finance assistance for automakers without a strong likelihood that they will be paid back," she said. |
| Congressional Democrats had previously insisted the money should come from a bank rescue fund - known as the Troubled Asset Relief Programme (TARP) - rather than the fund for the production of environmentally friendlier cars. | Congressional Democrats had previously insisted the money should come from a bank rescue fund - known as the Troubled Asset Relief Programme (TARP) - rather than the fund for the production of environmentally friendlier cars. |
| But according to Congressional sources, Ms Pelosi, a Democrat, was prepared to yield on that condition, and she has suggested that the $25bn fund could be used under certain conditions. | But according to Congressional sources, Ms Pelosi, a Democrat, was prepared to yield on that condition, and she has suggested that the $25bn fund could be used under certain conditions. |
| "We will not permit any funds to be borrowed from the advanced technology programme unless there is a guarantee that those funds will be replenished in a matter of weeks so as not to delay that crucial initiative," she said. | "We will not permit any funds to be borrowed from the advanced technology programme unless there is a guarantee that those funds will be replenished in a matter of weeks so as not to delay that crucial initiative," she said. |
| "Regardless of the source, all funding needs will be tightly targeted with vigorous supervision and guaranteed taxpayer protection." | "Regardless of the source, all funding needs will be tightly targeted with vigorous supervision and guaranteed taxpayer protection." |
| The automaker-bail-out plan is a stop-gap measure intended to help the three firms survive until the administration of President-elect Barack Obama takes over in January and can craft a longer-term solution, correspondents say. | The automaker-bail-out plan is a stop-gap measure intended to help the three firms survive until the administration of President-elect Barack Obama takes over in January and can craft a longer-term solution, correspondents say. |
| Responding to Friday's announcement that 533,000 US jobs were lost in November, Mr Obama called for urgent measures to stimulate the US economy and get people back to work. | Responding to Friday's announcement that 533,000 US jobs were lost in November, Mr Obama called for urgent measures to stimulate the US economy and get people back to work. |
| "There are no quick or easy fixes to this crisis... and it's likely to get worse before it gets better," he said. | "There are no quick or easy fixes to this crisis... and it's likely to get worse before it gets better," he said. |